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What is direct and indirect cost in tourism?

Direct costs are expenses that can be connected to a specific product, while indirect costs are expenses involved with maintaining and running a company. As a business owner, you will have a clearer understanding of how to set pricing if you can classify your costs correctly.



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Direct costs. include, but are not limited to, salaries, travel, equipment, and supplies directly benefiting the grant-supported project or activity. If directly related to a specific award, certain costs that otherwise would be treated as indirect costs.

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